Tax Credits for Illegal Aliens
While legislators managed to exclude E-Verify protections for U.S. workers from the economic stimulus bill, they did take the trouble to include loopholes that will allow illegal aliens to benefit from the tax credits offered in the bill. Most U.S. taxpayers earning under $200,000 a year will receive tax credits amounting to $400 for an individual and $800 for a married couple filing jointly.
Though "nonresident alien individuals" are not supposed to receive the credits, the federal tax code defines a "resident alien" as anyone who meets the "substantial presence test." Under IRS code substantial presence is defined as (1) having lived in the U.S. at least 31 days in the previous year; and (2) at least 183 days over the previous 3 years. Thus, any illegal alien who entered the U.S. prior to May 2008 will be eligible for the tax credit.
Eligibility for the tax credit is also extended to people filing returns using Individual Tax Identification Numbers (ITINs) instead of Social Security numbers. While not all ITIN filers are illegal aliens, many are. Language that specifically excludes ITIN holders from receiving other tax benefits is deliberately missing from the language of the stimulus bill.
March 2009
